Circuit Breaker

Circuit breakers halt trading on an index or stock when prices move beyond a set percentage in a day. Market-wide circuit breakers in India trigger at 10%, 15% and 20% moves in the Nifty or Sensex.

Why It Matters

They are designed to give investors time to think instead of panicking.

In India

Indian markets hit a market-wide circuit breaker in March 2020 as pandemic fears spread.